Moove, the African mobility fintech specializing in vehicle financing for drivers on ride-hailing and delivery apps, has secured $100 million in a Series B funding round, propelling its valuation to $750 million.
Uber Leads Investment Round
Leading this investment round is Uber, marking its first investment in an Africa-founded startup, alongside contributions from the sovereign wealth fund Mubadala and a consortium of other investors. This investment reflects a strategic move by Uber to ensure a steady supply of drivers for its platform across Africa, where it already operates in major urban centers. Moove aims to use the new capital to broaden its reach to 16 markets by the end of 2025, furthering its mission to make vehicle financing more accessible.
What Makes Moove’s Vehicle Financing Unique?
The vehicles provided to Moove customers include a diverse range, catering to various needs:
- Traditional options like Toyotas and Suzukis for general ride-hailing and delivery services.
- Electric vehicles (EVs) such as Teslas, aligning with the push towards a more sustainable mobility solution.
Uber’s backing is seen as a vote of confidence in Moove’s business model, particularly in light of Uber’s commitment to transitioning to a zero-emission fleet by 2040. Moove has made significant strides in incorporating EVs into its strategy, operating large EV fleets in the UAE and the U.K., and planning to bring over 20,000 EVs to Uber’s network.
However, challenges such as poor road infrastructure and lack of charging stations in Africa might delay Moove’s EV expansion in the continent, leading the company to explore alternatives like compressed natural gas vehicles.
Despite facing macroeconomic challenges in Nigeria, such as inflation and fuel price hikes that have affected drivers, Moove remains committed to its mission.
Moove has introduced several initiatives to support drivers during tough economic times:
- Fuel Subsidies: Offering Moove Cares programs to mitigate the impact of fuel price hikes.
- Reduced Weekly Remittances: Lowering payments by 33% to ease drivers’ financial burdens.
- Flexible Payment Options: Allowing drivers to extend their repayment period from 48 months to 50 to 60 months, making weekly costs more manageable.
These measures underline Moove’s dedication to its drivers and its broader goal of promoting mobility and employment opportunities across Africa and beyond.
Moove’s growth strategy emphasizes geographical diversification and expansion into various market categories, including ride-hailing, logistics, and mass transit.
The company’s recent partnership with Bolt, a competitor to Uber, indicates Moove’s intention to offer more options to its customers, although specifics of this partnership remain under wraps.
With over 20,000 customers and a projection of achieving profitability in the next financial year, Moove’s latest funding round is a testament to its resilience and vision for a sustainable and accessible mobility ecosystem.
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Featured Image courtesy of Moove